German battery manufacturer Varta AG has filed for insolvency under self-administration, marking the latest setback for the company as weakening market conditions, declining demand and the loss of a major customer continue to strain its business.
The company announced on Friday that it had submitted an application to the Stuttgart Local Court to begin insolvency proceedings under Germany's self-administration framework. Varta said the move was driven by a structural funding gap expected from 2027 rather than an immediate inability to meet its financial obligations.
Despite the filing, the company said operations would continue without interruption and employees would continue receiving their wages and salaries during the restructuring process.
Varta attributed its financial difficulties to deteriorating market conditions, weaker customer demand, unfavorable foreign exchange movements and the recent termination of a partnership with one of its key customers.
According to Reuters and German media reports, the customer is Apple, which has reportedly decided to source rechargeable CoinPower button-cell batteries for its AirPods from a Chinese supplier instead of Varta.
Chief Executive Michael Ostermann acknowledged the challenges facing the company and said management remains focused on preserving the business.
"VARTA AG has faced significant challenges in recent quarters. We are fully aware of our responsibility to employees, customers, suppliers and investors and are working to preserve as many jobs as possible while securing the company's long-term future," Ostermann said.
The insolvency filing comes little more than a year after Varta completed a previous restructuring. The company was delisted from the Frankfurt and Vienna stock exchanges in March 2025 as part of that restructuring, which officially concluded the following month.
Reuters reported that Varta's major shareholders, including Porsche AG and Austrian investor Michael Tojner, declined to provide additional financial support, leaving the company to pursue court-supervised restructuring.
Not all parts of Varta's business will be affected by the insolvency proceedings.
The company's profitable Varta Consumer Batteries division, which manufactures household batteries, is legally independent and has been excluded from the restructuring process.
The proceedings apply to the parent company as well as three subsidiaries: Varta Microbattery, Varta Micro Production, and Varta Storage.
Ostermann said the company remains optimistic about the long-term prospects of the energy storage business, describing the sector as an important growth market despite current financial challenges.
The Stuttgart Local Court has appointed restructuring specialist Tobias Wahl of law firm Anchor as provisional supervisor. Under Germany's self-administration process, Varta's existing management will continue running the company while the court-appointed supervisor oversees the restructuring on behalf of creditors.
The insolvency filing underscores the growing pressure on European battery manufacturers as competition from lower-cost Asian producers intensifies and global demand shifts across the energy storage and consumer electronics sectors.
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